Accounting firms are seeing their revenues, partner income and profits increase this past year, even as more firms resort to outsourcing to fill their talent shortages, according to the 25th anniversary edition of the venerable
The survey found that in firms with revenue over $2 million, income per partner was up 11.8%, while revenue grew 11.4%.
In response to the hiring shortage, among firms with over $10 million in revenue, more than 50% are engaging in outsourcing activity, and close to 70% plan to do more outsourcing next year. Of those CPA firms not currently outsourcing, 50% intend to do so next year.
Advisory services have become a larger share of revenue for many firms, with nearly 10% of the survey participants saying over 50% of their revenue comes from non-compliance-related activities.
The survey reports on the results of 293 accounting firms, with the majority ranging from $2 million to $40 million in annual fees, across nearly 100 CPA firm metrics. The Growth Partnership, a St. Louis-based advisory firm, collects and compiles the data for The Rosenberg Survey each year.
Profits appear to be growing more quickly than revenue, according to the report.
"While it's been another amazing year of growth for the profession, that growth has come at a price," said Charles Hylan, managing director of The Growth Partnership, in a statement Monday. "For the second year in a row, profits grew faster than revenue, all while a severe staffing shortage had people stretched to their limits. The question for firm leaders, then, is how to keep the performance riding high without burning out their staff — especially as economic, talent and technology pressures persist."
